A report by Fitch Solutions states that the period 2018-2022 is seeing a growth in gold production because slightly higher prices and stronger company financials are encouraging greater mine investment.

"We forecast global gold production to increase from 104moz in 2018 to 115moz by 2022, averaging 2.6% annual growth," the document reads."We expect gold prices to continue to head higher, averaging USD1,275/oz in 2018 and USD1,400/oz by 2022," it adds.

According to the market researcher, Russia will lead the rising trend with a 4% growth this year, up from 0.8% last year.

The Natalka project is located in the Far East of Russia and has 16 million ounces of Proven and Probable Reserves. Photo by Polyus Gold.

In the longer term, Fitch says Russian gold production will continue to grow because there are some 19 projects due to come online. Among them is Polyus Gold's Natalka project, which should be fully operational by the end of the year with a production capacity of 420-470koz per year.

"We expect Russian gold production growth to accelerate in 2018 as domestic demand for the precious metal is buoyed by the prospect of further western sanctions on state-banks, which will respond by increasing their reserves of gold," the market researcher says.

When it comes to the US, Fitch forecasts steady production growth, which should rise from 8.0moz in 2018 to 8.6moz by 2027.

The report states that the drivers behind the hike are improving gold prices and both greenfield and brownfield projects with junior miners taking the lead.

Together with the juniors, big player Newmont (NYSE:NEM) is expected to take a major role in the US output growth since it achieved commercial production at the Twin Creeks expansion project back in July. The Nevada operation will add 30-40koz annually between 2018 and 2022.

In Australia, on the other hand, Newmont expects 2018 production to be 1.5-1.7moz.

This, together with OZ Minerals' development of the massive Carrapateena copper-gold project, will help grow output from 10.1moz in 2018 to 13.0moz by 2027, which is an average 3% of annual growth.

On the negative side there is China whose gold production Fitch sees stagnating over the coming decade, as declining ore grades, tightening environmental standards and miners focused on acquiring low-cost assets abroad limit the country's project pipeline.

"We forecast an average annual growth rate of 0.2%. This represents a notable slowdown compared to average annual growth of 5.5% over the previous 10-year period," the report reads.

Despite this and the fact that in 2017 Chinese gold output had already declined by 8% y-o-y to 14.8moz, the country is expected to remain the largest global producer of gold ore.

The Turquoise Ridge underground mine is seen by the new Barrick as one of the assets with "high potential" to become Tier 1. Barrick is the operator and 75% owner of the Nevada-based mine. Newmont Mining owns the remaining 25%. (Image courtesy of Barrick Gold.)

Fitch Solutions Macro Research just published an update to a previous study looking at the global bauxite market. In the most recent version of the document, the firm states that bauxite production growth will remain high over the coming years, as new projects come online in Australia, Indonesia expands exports, India’s production ramps up, and existing projects in Guinea drive growth.

Newmont Mining Corp. has sold Japan’s Sumitomo Corp. a 5%-stake in its Yanacocha gold mine in Peru for $48 million, making the Asian trading house a partner in the business that also involves local miner Buenaventura.

Mobarakeh Steel Company (MSC), Iran’s largest steel company has produced 5.28 MnT crude steel during the 8 months of current Persian year (21 Mar-21 Nov’18). Crude steel production registered a growth of 12% Y-o-Y against around 4.60 MnT produced by MSC during the same period of last Persian year.

Iran, one of the largest billet exporter in MENA region is currently facing economic sanctions from US, owing to which the steel export has affected badly. Iran has exported 1,806,000 MT billet and bloom during the first seven months of current Persian year (21-Mar till 22-Oct’18).

Iran, one of the largest steelmaker in MENA has witnessed a sharp fall in graphite electrode imports. The nation, primarily produce steel through EAF, has imported 3,380 MT GE in Oct’18, registered a downfall of 60% M-o-M against 7,900 MT imported in Sep’18.

According to IMIDRO, Azerbayjani steel has bagged CE certification from Europe in order to export manufactured products to other countries, as well as to promote the brand and create an additional competitive advantage in the steel sector of the country.

Our vision

We would like to transfer the appropriate data and news to all active and authorized experts and companies in mines, metals and related industries in order to provide the mutual improvements and in a win-win game. Thus, we could make a better world!

Contact us

We would love to be in contact with our customers, experts and partners in mines, metals and related industries, thanks in advance.

CopyRights

Any kind of copying or republishing the contents of this website without our permission is forbidden.
Design and development by macromediax